Intelligence Squared The Intelligence Squared Economic Outlook, with Paul Johnson, Part Two
Oct 5, 2024
Paul Johnson, Director of the Institute for Fiscal Studies, shares his insights on Britain's economic landscape after the 2024 general election. He delves into the pressing issues of intergenerational inequality and the wealth gap that influence public policy. The conversation addresses Brexit's lasting economic effects, including trade negotiations and challenges for small businesses. Johnson critiques populist economic strategies lacking solid funding plans and highlights the advantages of devolved governance for better public financial management.
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Importance of FDI
- Foreign direct investment (FDI) is crucial for the UK economy, especially for productivity.
- FDI fell significantly after 2016, potentially due to Brexit or subsequent political chaos.
1997 Pension Tax Changes
- In 1997, Gordon Brown removed the tax credit on dividends for pensions, impacting occupational pensions.
- Occupational pensions have declined, partly due to increased regulation and lower returns.
UK Debt Ownership
- UK government debt is held by pension funds, international investors, and the Bank of England.
- The Bank of England is reducing its gilt holdings through quantitative tightening.
